What Drives IFDIs in the Nigerian Banking Industry?

Aburime, T.U., WHAT DRIVES IFDIS IN THE NIGERIAN BANKING INDUSTRY, pp. 112-123, Cambridge Scholars Publishing, 2011

34 Pages Posted: 5 Aug 2010 Last revised: 13 Aug 2011

Date Written: August 4, 2010

Abstract

To contribute to the understanding of FDIs in Nigeria, this study sought to empirically identify significant drivers of IFDIs in the Nigerian banking industry. Using a panel data set comprising 204 observations of 23 banks over the period 1996-2007 and industry-level, macroeconomic and sociological indices over the same period, fixed effects regression results indicate that profitability, volume of international trade and infrastructural development are significant positive drivers of IFDIs in the Nigerian banking industry. Hence, as it currently stands, the Central Bank of Nigeria needs to, for the moment, set aside her habit of wooing foreign investors into Nigeria’s banking industry since the habit may not produce sustained results unless accompanied by far-reaching infrastructural and economic development.

Keywords: FDI, IFDI, Banking Institutions, Nigeria

JEL Classification: F21, F23, G21, N2

Suggested Citation

Aburime, Toni, What Drives IFDIs in the Nigerian Banking Industry? (August 4, 2010). Aburime, T.U., WHAT DRIVES IFDIS IN THE NIGERIAN BANKING INDUSTRY, pp. 112-123, Cambridge Scholars Publishing, 2011, Available at SSRN: https://ssrn.com/abstract=1653245

Toni Aburime (Contact Author)

Deakin University ( email )

221 Burwood Highway
Burwood, Victoria 3125
Australia
+61 4 20635563 (Phone)

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